Abstract

Economics is the study of how human beings in a society go about achieving their
wants and desires. It is also defined as the study of allocation of scarce resources to
satisfy individual wants or desires. The latter is perhaps the best way to broadly define the
study of economics in general. Economists analyse questions and issues on the basis of
trade off i.e. they compare the cost and the benefits of every issue and make decisions
based on those costs and benefits. Broadly, economics may be divided into
macroeconomics and microeconomics. Macroeconomics as the name suggests is the study
of the overall economy and its aggregates such as Gross National Product, Inflation,
Unemployment, Exports, Imports, Taxation policy etc. Microeconomics deals with
individual actors in the economy such as firms and individuals. Further the market is
perhaps the most important and complex institution playing a vital role in the decision
making process of any economy.